JEREMIE

1. JEREMIE • JEREMIE stands for ‘Joint European REsources for MIcro to medium Enterprises’ • ‘ Joint resources’ because JEREMIE combines resources from ERDF + national public sector + EIB+ other IFIs, banks & financial intermediaries. • Not an organisation but a series of coherent actions

2. Why JEREMIE? • Enhanced Access to finance for SMEs in the regions is needed • Renewed Lisbon Strategy and CSG stress the need to enhance market driven and sustainable financial products and instruments

3. Main Actors of JEREMIE • Commission: DG REGIO with ENTR and ECFIN • EIF + EIB (EIB as loan capital provider) • Other IFIs, mainly the EBRD for the 8 new MS, Council of Europe Dev. Bank (CEB) • Other specialized financial intermediaries, I.E. KfW (DE), Caisse des dépots (FR),etc

4. Main Actors of JEREMIE • Regions and programme authorities • National and regional banks and financial intermediaries • SMEs • Micro credit (up to 25.000 EUR) beneficiaries: • Young or old first time entrepreneurs • Women • minorities

5. JEREMIE PHASES Phase 1 : Preparation • Evaluations (2006-2007) • Programming Phase 2: Implementation • Selecting of Holding Fund. MA transfers funds to Holding Fund • Selecting of Financial Intermediaries, accreditation Phase 3: Financing SMEs and micro-credit beneficiaries

6. Phase 1: Evaluation Evaluation consists in: • gap analysis of potential demand and supply of financial products for SMEs in the regions • identifying and recommending appropriate market driven instruments to fill the gap

7. Evaluation • To be carried out by the EIF in close cooperation with the regions, in 2006 and early 2007 • EIF will be assisted by Commission services: • DG REGIO: B1+ Operational Desks + Evaluation Unit • DG ENTR, DG ECFIN

8. Evaluation • Expected inputs from: • European Micro finance Network( EMN) • European Banking Federation • European Venture Capital Association (EVCA) • Other associations and networks

9. Evaluation Evaluations are available freely to: • Regions-programme authorities • Interested holding funds and financial intermediaries • Associations of SMEs and Chambers of commerce

10. Who Finances the Evaluation? • ERDF- Commission technical assistance credits will cover 75% of the cost • EIF will cover 25% of the cost • Budget for 2006: 3.5 million EUR

11. Phase 1: Programming • Operational programmes use results of evaluations • DG ENTR and ECFIN contribution to programming phase

12. Phase 2: Selecting Holding Fund • Tendering procedure by MA for the selection of holding fund • Commission services will advise on organizing tendering • EIF willing to respond to tenders, alone or with IFIs/local financial institutions

13. Phase 2: Selecting Holding Fund The Holding Fund with the progr. authority, based on the evaluation: • Define and periodically review the JEREMIE strategy and policy mix (supported financial products, targeted SMEs, etc) • Arrange for the necessary market driven instruments and financial intremediaries

14. OP Transfers funds to Holding Fund • OP transfers funds to the Holding Fund for ALL types of financial products • Such Transfers are IRREVERSIBLE for the period 2007-2015 • Supplementary irreversible transfers possible in the period 2007-2015 • Such transfers are eligible as interim ERDF payments (rev art 77 of general regulation)

15. Selecting Financial Intermediaries • MA assisted by Holding Fund selects financial intermediaries • Holding Fund accredits financial intermediaries • Accreditation subject to periodic review

16. Types of Financial Intermediaries • Venture capital funds, including: • Start ups and Seed capital funds • Business angels • Technology and innovation funds • Technology funds

17. Types of Financial Intermediaries • Guarantee funds • Loan and mezzanine funds • Micro credit providers • Fin. intermediaries offering any combination of the above financial products and services

18. Phase 3: What kind of support for SMEs? • Maximum publicity for JEREMIE products for SMEs and micro credit beneficiaries (ensured by OP, Holding Fund and Financial Intermediaries) • Financial intermediaries evaluate proposals by SMEs and provide them with: • Equity and Venture capital • Mezzanine financing • Guarantees • Loans • Advice and assistance

19. Micro Credit Operations • Banks are reluctant to consider such "social economy" operations • Specialized Micro Credit Providers can fill the gap • Credit up to 25.000 EUR • First time entrepreneurs • Young or old entrepreneurs • Women • Minorities, unemployed, etc

20. Monitoring JEREMIE • Holding Fund , in close cooperation with OP, monitors JEREMIE implementation by Financial intermediaries • Following effective demand for each type of financial product, Holding Fund channels funds from the OP to FI in the whole period 2007-2015

21. Closure of OPs and JEREMIE in 2015 At the closure of OPs at the end of 2015, ERDF grants transferred to Holding Funds must have been used at least once to: • finance SMEs( equity,VC, loans, guarantees) • finance micro credit beneficiaries, • cover guarantees offered by Guarantee Funds • finance eligible management costs

22. Added Value of JEREMIE • Evaluation of gaps between supply and • demand in the regions( by EIF in 2006) • ERDF Programs for 2007-2013 planned • timely on the basis of the gap analysis • Two tendering procedures planned for • the whole 9 years period 2007-2015. • Strategy and policy mix defined on the • basis of the gap analysis • One professional Holding Fund selected • by the Program to : • promote all financial products, • to accredit and select financial • intermediaries

23. Added Value of JEREMIE • One professional Holding Fund to : • Implement all financial products, based • on gap analysis and EFFECTIVE demand • Accredit-select and transfer funds to financial intermediaries • Monitor implementation by financial intermediaries

24. Added Value of JEREMIE • Recycling ERDF funds contributed to JERREMIE = sustainability. • Leveraging ERDF grants with private capital contributed by holding fund, Banks, financial intermediaries, other investors.